Gold falls by Rs300, silver Rs800 on poor demand, global cues

New Delhi: Both gold and silver fell for the second day in a row in the bullion market on Wednesday on sluggish demand amid a weak trend in overseas markets.

While gold declined by Rs 300 to Rs 29,600 per 10 grams, silver dropped by Rs 800 to Rs 52,200 per kg.

Trading sentiment remained bearish on reduced offtake by jewellers and stockists, traders said.

They added weak trend in the overseas market, where gold declined after imports into China rose less than anticipated and the dollar gained, eroding demand for the metals as a hedge against inflation, also influenced the sentiment here.

In New York, gold fell by USD 20.80 to USD 1,566.50 an ounce and silver by 1.94 per cent to USD 26.81 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 300 each to Rs 29,600 and Rs 29,400 per 10 grams, respectively.

Sovereign followed suit and lost Rs 200 to Rs 24,200 per piece of eight grams.

In a similar fashion, silver ready dropped by Rs 800 to Rs 52,200 per kg and weekly-based delivery by Rs 690 to Rs 52,535 per kg.

Silver coins plunged by Rs 1,000 to Rs 61,000 for buying and Rs 62,000 for selling of 100 pieces.